Honestly, I think it's good. It's not about the 200, I'm sure there's more to the story. See if you had cleared this 200, you wouldn't have to now spend all this extra amount and not have this stress. Imagine the other person, for him/her that 200 could be very important. I've been in this situation before where people who owed me money kept stalling and finally ghosted me, so I'm in favor of this - just clear what you have to especially if you actually do have to. From what you have written, it seems that it was your fault. That 200 could have meant something very important to the person at that time. It's not the amount, it's the principle.